Bitcoin Trades for a Premium on Binance.US Amidst SEC Lawsuit

Sahana Kiran
Source – Unsplash

Lawsuits are generally seen as detrimental. However, when they come from a law enforcement agency with notable allegations, the negative impact is heightened. However, despite the recent legal action taken by the Securities and Exchange Commission [SEC], there are various factors indicating positive prospects for Binance.

According to recent data, Bitcoin [BTC] has been trading at a premium of about $400 on Binance.US. As per TradingView, the current price of Bitcoin on Binance.US is about $27,362. But on Coinbase, it is around $26,800. This price disparity comes amidst the recent suits filed by the SEC against both crypto exchanges, alleging violations of U.S. security laws by permitting the trading of crypto assets considered unregistered securities.

Source – BTC/USDT Chart on TradingView

As seen in the above chart, Bitcoin saw a major uptick earlier today following yesterday’s downfall. Additionally, the Relative Strength Index [RSI] indicator used in the one-hour chart of BTC highlights how there has been increased buying activity as opposed to selling in Binance.US’s BTC market.

Given the recent events in the crypto market, it’s not surprising that users are responding in a certain way. The presence of a Bitcoin premium on Binance.US suggests that individuals are trying to swiftly convert their assets into Bitcoin. This approach allows for immediate withdrawal, as opposed to the long process involved with fiat currency wire withdrawals. The SEC’s decision of freezing the firm’s assets could have affected this move.

Bitcoin: Realized losses remain ‘quiet’

According to Glassnode data, the on-chain realized losses of Bitcoin were at $112 million. This is significantly lower compared to the largest capitulation event ever recorded. This situation is viewed as a positive signal because it means that investors are holding onto their assets rather than sell, despite the chaos caused by the SEC’s actions.


Glassnode wrote,

“Following a crescendo in US regulatory pressure on major cryptocurrency Exchanges #Binance and #Coinbase, the market experienced significantly volatile moves in both directions. However, the magnitude of Realized Losses recorded On-Chain remains quiet at $112M. This remains -$3.05B (-96.5%) smaller than the largest recorded capitulation event, suggesting an increased degree of resilience amongst market participants.”

It looks like the crypto community’s trust in Bitcoin and the exchanges under SEC’s radar was still strong.